The Ambani row may be settled today

18-Jun-05

Will the Reliance Industries Board meeting be able to finally seal the split? The answer will probably be acquired later in the day after the conclusion of the RIL meeting that is scheduled to begin this morning at the company's Maker Chamber IV office at Nariman Point. It is believed that the Ambani family and its advisors worked through the night to finalise the details of the split and the formula being worked out will in all probability give elder brother Mukesh most of Reliance's production-related industries, while Anil will get most of the service industries. Today's meeting is regarded as very crucial in deciding how each brother will buy the other out of each firm. This is because Mukesh will most likely have to buy Anil's stake in RIL. RIL's stocks have soared to a high of about Rs 608.40 on the Bombay Stock Exchange before closing at about Rs 600.85 yesterday. Anil on the other hand will have to figure out how to take over Mukesh's 55 per cent stake in Infocomm. The control of RIL, Indian Petrochemicals Corporation Limited (that gained 0.94 per cent to close the day at about Rs 161.25 yesterday) and Reliance Life Sciences Private Limited will probably rest in Mukesh's hand. Anil therefore is anticipated to get Reliance Energy (that gained about 0.24 per cent to close the day at about Rs591yesterday), Reliance Infocomm and Reliance Capital.